appraising performance. purpose of performance appraisal the main focus of performance appraisal is:...
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Appraising
Performance
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Purpose of Performance Appraisal The main focus of performance appraisal is: improving organisation performance by focusing
on individual effort and by developing them
The other purpose of a performance appraisal is: to communicate to the employee how
management views his/her productivity, based on job specifications.
to provide a forum for an exchange of information and input between employer and employee.
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Performance Appraisal Purpose: improve organisational
performance How: regular discussions
between individual & manager Where: at the work place When: continuous; often at half
yearly or yearly interval By Whom: employee's supervisor and
the employee
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What is it for?The underlying purpose of performance management is to improve
the utilisation of staff resources by:
assigning work more efficiently improving job placement validating selection procedures and evaluating training programs recognizing potential for development to managerial positions identifying training needs fostering a better working relationship between subordinate and
supervisor fostering a better working relationship between work units assisting employees in setting career goals fostering improvements in work performance meeting employees' needs for growth keeping employees advised of what is expected of them
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It is also to provide a basis for such personnel actions as: Periodic appraisal promotion based on merit recognition and rewards for past
performance review at completion of a probationary
period warning about unacceptable performance
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What does it need? a precise summary of the individual's
agreed contribution to the organisation performance for the year
knowledge of what the individual has achieved in the past period
knowledge of the way the individual performs his/her tasks/duties
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Designing an effective system of appraisal The process of designing an appraisal system
should ideally involve incumbents, supervisor, clients, peers, customers and HR professionals in making decisions about each of the following issues:
measurement content measurement process defining the rater (i.e. who should rate the
performance) defining the ratee (i.e., the level of performance
to rate) administrative characteristics.
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The Appraisal Process An appraisal involves:
Setting work standards Assessing actual performance vs. these
standards Providing feedback to the employee
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Why Appraise Performance? Appraisals provide information for
promotion and salary decisions Provides opportunity to review an
employee’s work related behavior with the goal of correcting deficiencies
Is part of the career-planning process Appraisals help manage and improve
your firm’s performance
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The Supervisor’s Role Must be familiar with basic appraisal
techniques
Be candid but fair when delivering bad news
HR will often outline guidelines but leave implementation to supervisors
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Steps in Appraising Performance
Define the Job
Appraise Performance
ProvideFeedback
Make sure allagree on duties
Compare performance
to the standardDiscuss
progress &make plans
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Manage Expectations Job descriptions are usually written for a
group of jobs leaving many aspects of a job without specific goals
Quantify expectations with explicit goals for each expectation
Employee should know basis of appraisal ahead of time
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Appraisal MethodsGraphic rating scale: a scale that lists a number of traits and a
range of performance for each. The employee is then rated by identifying the score that best describes the level of performance for each trait.
Quality - 1-5 Productivity - 1 - 5
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Appraisal MethodsAlternation Ranking Method: Ranking employees from best to worst on
a particular trait, choosing highest then lowest till all are ranked.
A particular traitRanking
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Appraisal MethodsPaired Comparison Method: Ranking employees by making a chart of
all possible pairs of the employee for each trait and indicating which is the better of the employee.
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Appraisal MethodsForced Distribution Method: Similar to grading on a curve;
predetermined percentages of ratees are placed in various performance categories.
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Appraisal Methods Critical incident method Keeping a record of uncommonly good or
undesirable examples of an employees work related behaviour and reviewing it with the employee at the predetermined time.
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Narrative Forms Final appraisals are frequently in a
written narrative form Supervisor rates employee’s:
Performance factor or skill Give examples & an improvement plan Explains good & bad performance areas
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Behaviorally Anchored Rating Scales
BARS combine best features of narrative, critical incidents, and quantified scales in five steps
Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument
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BARS for Grocery Clerks Researchers developed a BARS for grocery clerks
by collecting critical incidents in 8 areas (rating scale given below):
•Knowledge and judgment
•Conscientiousness
•Skill in human relations
•Skill in operation of register
•Skill in bagging
•Ability of checkout work
•Skill in monetary transactions
•Observational ability
Extremely Poor Poor Average Good Extremely Good1 9
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Advantages of BARS A more accurate gauge of performance Clearer standards – critical incidents
along the scale make it clear Feedback – its easier to explain ratings
to appraises Independent dimensions – clustering
critical incidents make dimensions more independent
Consistency – different raters appraisals of same individual are similar
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Management by ObjectivesMBO refers to a organizational 6 step goal setting and appraisal program
Set theorganization’s
goals
Set thedepartmental
goals
Discussdevelopmental
goals
Defineexpected
results
Performancereviews
Providefeedback
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Dealing With Rating scale Appraisal Problems Unclear standards – use of words like “good” or
“fair” on appraisals
Halo effect – one trait affects all ratings
Central tendency – everyone’s in the middle
Leniency or strictness – no middle
Bias – characteristics affect rating
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Research Insight One study showed appraisal reviewers rated the
same woman differently when only difference was pregnancy
It demonstrates that outside biases can influence ratings
Men and women raters act differently; many things influence how a review is conducted
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How to Avoid Appraisal Problems Learn and understand the problems Use the right appraisal tool Train supervisors Reduce outside factors: time constraints,
union pressures & turnover Keep a diary of critical incidents
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Legal Issues in Appraisals Inadequate appraisal systems often lie at the root
of discriminatory layoffs, promotions, discharges or merit pays
They are arguable if appraisals are: Based on subjective observations Not administered and scored consistently Based on evaluators who did not have daily contact
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Who Does the Appraising? Peers Your Boss Rating committee Subordinates You
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360o Appraisals
360o assessments evolved from upward feedback appraisals
One study: 29% use it with 11% planning to add multi-source assessments
Great deal of paperwork
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The Appraisal Interview Appraisal interview - an interview in
which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.
Adequate preparation and effective implementation are therefore essential.
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Three Appraisal Types/Objectives
Appraisal Type The Objective
Performance is satisfactoryEmployee promotable
SatisfactoryNot promotable
UnsatisfactoryCorrectable
Make developmentPlans
MaintainPerformance
Take correctiveAction
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Keep These in Mind When Conducting the Interview Be direct and specific - talk in terms of objective work data
Don’t get personal - “You’re too slow in producing those reports.”
Encourage the person to talk - stop and listen to what the person is saying
Don’t tiptoe around - make sure the person leaves knowing exactly what they are doing right and wrong
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A Defensive Subordinate Understanding and dealing with defensiveness is
an important appraisal skill Defensive behavior is normal Never attack a person’s defenses Sometimes it is best to do nothing at all
Recognize your own limitations – don’t expect to be able to solve every problem that arises
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Provide examples
Avoid yearly “critical broadsides” by giving frequent feedback
No real surprises at formal appraisal
Criticism should be objective
Use Constructive Criticism
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How to Insure Improved Performance Set improvement goals
Establish comfort
Allow employee influences
Provide constructive information
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Most Commonly Used Appraisal Methods
32%
24%
34%
10% 0% MBOGraphic ratingEssayOtherBehavioral
Society for Human Resource Management reports about 89% of surveyed managers use performance appraisal for all their employees
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Do Appraisals Really Help?
Traditional appraisals may be counterproductive
One study showed 32% rated appraisals ineffective; 4% rated them effective